All Forum Posts by: Barry Sanders

Most successful with apartments.com there have been some mergers this year but that one still remains free for the small time do it yourself landlords. 

@Bill F. is a 100% right on this, the reason there is such a big disagreement here is people aren't talking about the same unit sizes

An estoppel is not proof that rent is being paid its just proof of what rent is supposed to be paid (physical vs economic vacancy), it protects you after the sale so residents cant say their rent was lower than it actually is or they have special privileges they really don't

Don't wait until after you buy to find out who has actually been paying. If they aren't willing to give you the financials or a third party to audit it then you really wont know what you are purchasing or how much money you will need to have in your operating account 

Requesting bank statements before you are in a binding contract however would be unusual

Thanks for the tips @Seth Ferguson, definitely would only bring this deal to investors with a high risk tolerance. However the capital needed to go from 0-80% may make the deal too high risk. I have seen a lot on the market and seem to be a lot of potential in the right hands. I would more so be looking to take a 50% occupancy to an 80-90% occupancy at this point in my career. I imagine that whoever purchases it at a lower occupancy would need a hard money bridge loan.  

50-120unit multifamily ..What prior experience would be required before undertaking a heavy lift as an out of state investor? Taking a 100% vacant building to 50% vacancy  or 50% occupancy to 80% occupancy

Would a good property manager be sufficient or would more micromanagment be needed? 

I understand its a high risk invest just  wondering what are the best practices  to mitigate with reserve funds and management etc

If there were recent renovations or updates it wouldnt be a big issue. If it hasn't been renovated since the 50's then you will need to have high reserves for repairs and capex. If it still makes sense when you factor that in I would go for it. Although some people say age doesnt affect the price, the date it was last updated/renovated does

Are you referring to stabilized properties only? 

With Value add maybe 50% occupied property in place noi you may be buying at a 4 cap and the projected noi would be an 8 cap.  Wouldnt your purchase cap rate  fall somewhere in between? Not so much affected by market/area caps.  At this point cocr seems to be the more important factor for offer price. 

With this reasoning would you still be overpaying for that unstabilized property? Or is it expected to pay slightly more than property is currently worth

How are you financing the purchase? Is it 80%LTV and still doesnt cash flow? If youre house hacking you may still have to make some payments but doesnt mean its a bad deal just not a home run

Rochester, NY has some great areas, lot of potential by the public market

@Daniel Maciag If a neighborhood is truly bad then your tenants will be too. As far as NYC goes a lot of the places people think are bad are really not that bad, it really depends on what your frame of reference is.  Unfortunately it will take a very long time for the reputations of these areas to improve and reflect that before  you can see any benefits from gentrification/ appreciation.  Think 10 years or more, are you willing to put up with bad tenants for that long? if you sell too early you may have to sell at a loss, Like  @John Hickey said if youre just doing it for the money it may not be worth the stress of living there

when you say investing in the opportunity zones are you referring to tax benefits of an OZ fund or making a secondary gain through non OZ fund investment due to the appreciation it will create in the area?

If youre referring to the Zone itself, I would say its pretty hard to go wrong in Brooklyn as long as youre not overpaying and buy for cash flow not appreciation